08-04-2008 WS - Laserfiche WebLink

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Item No. 1 Meeting Date: August 4, 2008 Type of Business: Work Session City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Review General Fund Budget Attached is the General Fund budget for your consideration. The State will release information on the amount of local government aid (LGA) the City will receive in 2009 on August 1st. I have included a preliminary number based on projections from the state, however, this amount could change. The current budget draft includes a levy decrease and no transfer from earnings from the Levy Reduction Fund. The result of the State imposed levy limits is an overall decrease in the City levy. LGA is anticipated to increase $521,728 but is somewhat off-set by a decline in the tax levy. Franchise fees and interest income will remain flat. Overall, revenues excluding any transfers from the Levy Reduction Fund will increase 1.71%. Expenditures include a 3% salary increase plus any step increases or longevity and potential market adjustments. Also an increase of $50 for the City contribution for healthcare premiums and a PERA rate increase. The City’s cost of fuel and energy will have healthy increases to reflect higher costs, fuel at $4.50 for unleaded and $5.00 for diesel and natural gas and electric budgets were increased 20% over use in 2007. Information technology (IT) expenses will increase, we are in the last year of a three year phase in of Metro I-net costs, we had been previously underpaying for the services and Roseville has been willing to allow the participating cities time to increase their budgets to better reflect use, we continue to get good value even as our costs increase. The Community Center should not require any increase in transfers over 2008, this draft includes a transfer of $185,000. As additional information becomes available, the budget will be adjusted accordingly, this may require the City Council to continue to evaluate and reconsider items that have been agreed upon. Total General Fund expenditures increased by $396,720 over the 2008 budget or 7.04%. Personnel costs account for $192,888 or 49% of that increase, materials and supplies $36,951 or 9%, contractual services $20,574 or 5% debt service $316 or .07%, capital outlay $87,991 or 22%, contingency $58,000 or 15% and transfers to other funds has no increase over 2008. We presently have a deficit of $300,435 before considering any reductions in expenditures or increases in revenues or transfers from the Levy Reduction fund. Staff welcomes any comments, questions, or suggestions from Citizens or the City Council. Respectfully Submitted, Mark Beer